DAVOS, Switzerland (Reuters) – Greek and European Union officials closed ranks on Friday, insisting there was no chance of a Greek default or an EU bailout and that Athens would do whatever it takes to cut its burgeoning deficit.
“Solidarity is possible, will exist. A bailout is not possible and will not exist,” EU Monetary Affairs Commissioner Joaquin Almunia told Reuters Insider TV.
Greek Prime Minister George Papandreou, also at the World Economic Forum in Davos, promised to do all that was required to cut the deficit and restoring confidence.
“Greece is in a situation where we need to take very strong measures and structural changes in our country,” he said. “We’re determined to implement the program.”
The euro zone has pledged to cut its budget deficit this year to 8.7 percent of gross domestic product from over 12 percent and return to the EU’s 3 percent cap by 2012.